Amid reassessments of the impacts of the new coronavirus pandemic on the Brazilian economy, the Central Bank (BC) updated its projection for Gross Domestic Product (GDP) in 2020. The expectation for the economy this year has gone from a decline of 6.4% to a contraction of 5.0%. The new estimate is included in the Quarterly Inflation Report (RTI).
The National Monetary Council (CMN) has increased the gross income limit for micro-entrepreneurs, which can be covered by targeted productive micro-credit, whose rate has a ceiling of 4%. The income limit has been raised from R$ 200,000 ($38k) to R$ 300,000 ($57k) per year. Source: Reuters
Owner of the largest extension of the Amazon Forest, Brazil is also a leader in social and environmental conflicts in the region. A survey comparing the situation of four countries showed that, of the 1,308 confrontations recorded in 2017 and 2018, 995 occurred on Brazilian soil. The main cause of the conflicts is agribusiness, which involves both livestock and soybeans and other monocultures.
The BTG Pactual zeroed out last year’s carbon emissions. The financial institution offset 13,000 tons of CO2 through carbon credits purchased from a forestry project in Uruguay. The bank has also taken steps to reduce the carbon footprint of its activities, using digital media to hold meetings and installing solar panels in its office in Medellin, Colombia.
Brazil’s coffee super crop is beginning to translate into record shipments. Green coffee exports are expected to exceed 3.5 million bags this month, the highest volume ever recorded for September and the highest since December 2018, said Carlos Alberto Fernandes Santana, director of Empresa Interagrícola.
Brazil’s agribusiness GDP grew 5.26% in the first half of 2020 compared to the same period last year, with the primary segment (activities within the gateway) rising by almost 15% according to the CNA/Cepea study. The increase was recorded amid record grain harvests and high prices at a favourable exchange rate for exports, which also helped the livestock segment.
EDF Renewables will install the Serra do Seridó wind farm from the first half of 2021. The company will generate around 600 jobs in the construction phase of the park with an investment of R$ 1 billion ($189 mm). The company has a grant for the eight plants that make up the park, totalling 287.6 MW of power.
Foreign investments in Brazil are falling from every perspective. Brazil faces political instability, and a crisis of environmental governance that impacts its reputation in the market. Foreign investors removed R$88.9 billion ($16.8 bn) from the Brazilian stock market this year until September 18, almost double the volume registered in 2019.
ABB and Hydrogen Optimised have signed a document to explore the development of large-scale, grid-connected green hydrogen production systems. The agreement formalizes the scope of work to explore the implementation of a demonstration system, as well as the preparation of a 100 MW plant project and marketing strategies.
Neoenergia is looking at the opportunities of Brazil’s offshore (offshore) wind potential. According to the president, the company is developing preliminary studies for projects in Rio Grande do Sul, Rio de Janeiro and Ceará. There are 3,000 MW of development capacity in each area.